Mexico's power system operator Cenace has further postponed the country's long-awaited fourth long-term power auction.
Originally scheduled to take place before president Andrés Manuel López Obrador was sworn into office on Dec. 1—with pre-qualification starting in September, and the results revealed on Nov. 14—the auction had already been rescheduled to Dec. 18.
Instead, economic offers will now be presented between Feb. 15 and 19 of next year. The results are expected to be announced when the contracts are signed on Feb. 28.
Cenace signed off on the latest delay to the procurement process on Nov. 29, but only announced the postponement on Dec. 3.
In the announcement, Cenace said it had considered “the impact and importance that the long-term auctions represent for national and foreign investments on the national electric system.”
Lawyers and bankers who are working closely with sponsors presenting offers in the auction say that their clients are still willing to participate in the tender process, but some may get “cold feet” and end up withdrawing their bids as a result of the political uncertainty surrounding the new government's attitude towards private investments in Mexico's power sector.
(A version of this story first appeared in IJGlobal)